Sedgwick deflects Q4 2016 jobless claims
January 27, 2017
One hundred and eight CATA dealer members reported a combined 328 unemployment claims during the fourth quarter of 2016 to Sedgwick Claims Management Services, Inc., which has been serving CATA dealers under various names since 1979. The company’s efforts saved those dealers a total of $827,163 in benefit charges by contesting the claims.
By comparison, quarterly claims were as high as 949 in the fourth quarter of 2009. The improving economic situation has dramatically decreased the amount of claims processed and layoffs in the industry.
Sedgwick, Inc. monitors any unemployment claims against its clients and contests all unwarranted claims and charges. The company counts about 235 CATA dealers among its clients.
Claims that can be protested and subsequently denied help minimize an employer’s unemployment tax rate. The rate can vary between 0.55 percent and 7.35 percent of each employee’s first $12,960 in earnings.
The 2016 average unemployment tax rate & new employer rate for Illinois employers is 3.4129605 percent, or about $447 annually per employee ($460 in 2016). The rate continues to inch down from 2007, as the Illinois economy continues to improve.
"The unemployment tax is really the only controllable tax in business, in that it’s experience-driven," said Paul Schardt of Sedgwick. An ex-employee’s claim affects the employer’s tax rate for three years.
For new enrollees, client fees amount to $2.85 per employee, per fiscal quarter. For the fee, Sedgwick monitors all unemployment claims; files any appeals; prepares employer witnesses for hearings, as necessary; represents the client at any hearings; verifies the benefit charge statements; and confirms the client’s unemployment tax rate.
For more information and information on how to retain Sedgwick’s unemployment services, please call Bruce Kijewski at (773) 824-4322 or email him at Bruce.Kijewski@Sedgwick.com